FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $62.1B
| Holding Name | Contribution to Sector Production |
|---|---|
| Enel SpA | 10.4% |
| Duke Energy Corp | 5.8% |
| Iberdrola SA | 5.6% |
| Entergy Corp | 5.6% |
| Nextera Energy Inc | 5.3% |
| Centrais Eletricas Brasileiras SA - Eletrobras | 5.3% |
| Engie SA | 4.3% |
| Dominion Energy Inc | 3.8% |
| Southern Co | 3.5% |
| Vistra Corp | 3.0% |
| Holding Name | Contribution to Sector Production |
|---|---|
| BYD Co Ltd | 12.8% |
| Hyundai Motor Co | 11.8% |
| Kia Corp | 8.0% |
| Toyota Motor Corp | 7.1% |
| Stellantis NV | 6.7% |
| Geely Automobile Holdings Ltd | 6.4% |
| Great Wall Motor Co Ltd | 6.0% |
| General Motors Co | 5.8% |
| Ford Motor Co | 5.2% |
| Volkswagen AG | 4.6% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Peabody Energy Corp | 43.2% |
| Glencore PLC | 26.3% |
| Coal India Ltd | 9.6% |
| Alamtri Resources Indonesia Tbk PT | 7.2% |
| NACCO Industries Inc | 3.2% |
| Yankuang Energy Group Co Ltd | 2.7% |
| China Coal Energy Co Ltd | 1.7% |
| Alpha Metallurgical Resources Inc | 1.7% |
| Warrior Met Coal Inc | 1.3% |
| United Tractors Tbk PT | 1.3% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Petroleo Brasileiro SA Petrobras | 11.9% |
| PetroChina Co Ltd | 11.2% |
| BP PLC | 6.6% |
| Exxon Mobil Corp | 5.9% |
| Shell PLC | 5.5% |
| NK Lukoil PAO | 4.7% |
| Chevron Corp | 4.4% |
| Neftyanaya Kompaniya Rosneft' PAO | 3.9% |
| TotalEnergies SE | 3.9% |
| China Petroleum & Chemical Corp | 3.4% |
Northern Trust Asset Management (NTAM or Northern Trust) is a US-based firm that conducts its own engagements globally. It also has an agreement with Hermes EOS for engagement services with certain EMEA-domiciled funds. This profile represents the engagement activities of Northern Trust based on its publicly available reporting, the profile for Hermes EOS is available here.
Northern Trust appears to have a positive influence on companies on climate change. The asset manager appears to have a broad framework for climate engagements based on reducing climate and sustainability risks, using an ESG Vector Score as an indicator of corporate management of sustainability risks. NTAM has outlined engagement milestones, however these milestones lack detail on tracking company progress. It has an escalation response that includes voting in support of shareholder resolutions, voting against re-election of directors, and divestment.
NTAM appears to be actively engaging companies around climate, in particular through collaborative initiatives such as CA100+. It co-led engagements with National Grid on disclosure of Scope 3 emissions reduction targets, which resulted in the company setting a new medium-term Scope 3 target covering 80% of its Scope 3 emissions. It has also participated in an engagement with Sasol on its decarbonization strategy. The asset manager does not appear to have a clear stance on climate policy influence but has highlighted climate lobbying resolutions in its voting records and has supported majority of these resolutions. It appears to be a highly collaborative engager on climate, leading various engagements as part of CA100+.
Northern Trust has described its stewardship governance structure and appears to regularly review stewardship policies and activities. The asset manager is transparent about engagements, providing named case studies of its engagements through CA100+ as well as a list of companies it has engaged with. It discloses all proxy voting data, and includes specific details on its annual votes for climate specific shareholder resolutions.
NTAM does not appear to use shareholder authority to engage companies around climate.
Insightia data suggests that Northern Trust has mixed support of AGM resolutions InfluenceMap categorizes as in line with the Paris Agreement, supporting 16.7% in 2019 and 59.1% in 2020. Its support increased in 2021 at 81.3% but decreased in 2022 at 68.3%.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
